PAPER DELIVERED AT THE STAKEHOLDERS MEETING ON WHY THE CONRIBUTORY PENSIONERS’S MONTHLY TAKE HOME ARE RIDICULOUSLY TOO SMALL IN LAGOS STATE, ON TUESDAY 17TH MAY, 2022 AT ALAUSA, IKEJA, BY THE CHAIRMAN, ARPPELA, LAGOS STATE.1.00 Background of the SubjectPrior to the enactment of the Pension reform act 2004 in Nigeria; the country had faced many problems on payment of pensioner’s entitlement due to corrupt practices. The public service operated on unfunded defined benefit scheme and the payment of retirement benefits was budgeted annually. In many cases, even where budget provisions were made, inadequate and untimely release of funds resulted in delays and accumulation of arrears of pensioners dues. It was obvious therefore that the defined benefit scheme could not be sustained. Hence, there was need for a reform. The reform was borrowed from advanced country of the world where pensioners live a better life. The new pension scheme came and was embraced by the Lagos state worker on the ground that it was going to be better than the old one. Then the workers were migrated to new pension scheme in 2007 as both the government and the workers reached a Memorandum f Understanding (MOU) to make it work. Unfortunately, it failed at the point of arrival when the government failed to work out the entitlements of workers as at 2007 and credit the Retirement Savings Account (RSA) of the workers, thereby denied the workers the accrued interest which would have improved their accounts. This was due to lack of commitment and insincerity on the path of the government then. At the point of payment of bond the government adjusted the template, thereby releasing ridiculous amount of money called bonds to the retirees. That is exactly the genesis of the failure of the new pension’s scheme in Lagos state. 2.00 The main objective of Contributory Pension Laws.The pension reform Act 2004 as critically examined was meant to: 1a. assist individual by ensuring that they are to cater for their livelihood during old age and thereby reducing old age poverty.b. ensure that pensioners are not subjected to untold suffering due to inefficient cumbersome process of pension payment.c. stem the growth of outstanding pension liability.3.00 Failure of 1 (a) objectivei. The monthly take home of pensioner under Contributory Pension Scheme (CPC) cannot make the pensioner to survive e.g. a Deputy Director collects #50,000 monthly for life.ii. The monthly pension payment cannot take care of their livelihood at present and future.iii. The scheme does not put into consideration the effect of inflationary trend in the country because no input from Actuarial Scientist in the calculation.iv. The monthly take home is not subjected to periodic review.v. It made Contributory Pensioner to be stagnant for life.vi. Contributory Pensioner are now beggar as many live in abject poverty in Lagos state.Empirical study in to the average take home of Contributory Pensioners in Lagos state revealed that:Level 4 receive average of N7000 per monthLevel 5 receive average of N8000 per month Level 6 receive average of N10,000 per monthLevel 7 receive average of N12,000 per monthLevel 13 receive average of N28,000 per month Level 14 receive average of N41,000 per month Level 15 receive average of N48,000 per monthLevel 16 receive average of N52,000 per monthLevel 17 receive average of N70,000 per month3.00 Failure Of 1(b) ObjectiveRetirees are still waiting for 4 years after retirement before receiving their entitlement meant for 2007. This is a criminal offence on the part of the government.4.00 Implications Of The Contributory Pensions SchemeNon – payment of retiree’s accrued benefit into the RSA as at 2007 has made nonsense of the CPS.The system does not allow upward review of monthly Pension.The system does not take into consideration the welfare of the pensioners such as medical treatment, medical examination, housing, and transportation among others as government has completely neglected the Contributory Pensioners.Once retirees disengage from the service, government does not want to have anything doing with them again. This is not so where the pension scheme was borrowed from.Delay in the payment of pension entitlement has sent a lot of retirees to their early grave; many are battling with sicknesses such as stroke, cancer, high blood pressure, diabetes, death among others. Most retirees find it difficult to pay their rents, sky – rocketing bills, land use charge and other various bills that are being regularly imposed on residents. Many are homeless; this situation is pathetic as they have become object of pity in the society.The implementation of the reform negates the main objectives.You will recall that there are two groups of Pensioners in Lagos stateThe Defined Benefit Scheme Pensioners -> The defined benefit scheme Pensioners are the Pensioners that retired under the old scheme. This group of retirees, enjoy some benefits from the state government such as increase in their monthly pay a soon as the salaries of workers are review upward. Government celebrates them yearly. A deputy director under this scheme receives over two hundred thousand naira (N200,000) monthly.The Contributory Pension Scheme Pensioners -> The Contributory Pension scheme pensioners are the pensioners that retired under the new Contributory Pension Scheme. They contributed and the government contributed. This group does not enjoy any benefit from the Lagos State Government as they were neglected. A Deputy Director under the new pension scheme receives fifty thousand naira (N50,000) monthly. A custory look at our neighboring States such as Ogun State and Oyo State reveals that a Deputy Director in those states receive over two hundred thousand naira (N200,000) monthly as Pensions. Why is Lagos State Contributory Pensioners subjected to suicidal pension? What happens to the difference of over one hundred and fifty thousand naira (N150,000)?  The principle of egalitarian society is missing in the governance of Lagos State. Distinguished Stakeholders, our Brothers and Sisters that are still in Service what is the way forward? The future of this group of Pensioners is bleak. Contributory Pensioners are dying as a result of suicidal pensions.PrayersIn view of the above submission, we implore this house to present the following request before the government:Government should pay as a matter of urgency, all backlog entitlement due to retirees, which has accumulated for the past four years since 2019 as retirees can no longer wait till May, 2023.Government should upgrade the monthly Pension of all the Contributory Pensioners at all levels to a living Pension. Monthly Pension must increase as the workers’ wages increase.Government should pay the accrued interest on our entitlement since 2007 till date of payment of entitlement.Government should grant us free Medical Treatment and Medical Examination.Government should grant us free transportation on the state BRT buses.ON THE 5 POINT DEMAND WE STAND.COM OLAGBAYE JOHNSON   COM OMISANDE MICHAEL     General Secretary     Chairman